Walorski, Donnelly, Young issue statements on tax reform bill

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Published: Wednesday, 03 January 2018 21:48

PresidentTrump signed into law Dec. 22 the $1.5 trillion Tax Cuts and Jobs Act (TCJA) which makes widespread changes to the Internal Revenue Code.

The legislation is the first major overhaul of the U.S. tax code in more than 30 years. Almost all of its provisions, including a lower corporate tax rate of 21% and lower individual income tax rates, go into effect Jan. 1.

In addition, the TCJA establishes a territorial system of taxation for certain offshore business profits of domestic businesses, mandates taxation of offshore earnings at a reduced tax rate, introduces an entirely new concept of a reduced tax burden on pass-through business income, limits business interest deductions, and makes major changes to the individual tax structure, including a substantially increased standard deduction and major limitations on state and local tax deductions.

During the final processes leading to the signature of the bill by the president, U.S. Rep. Jackie Walorski and U.S. Senators Joe Donnelly and Todd Young released the following press stories for their Indiana constituents:

Walorski issues statement on President signing Tax Cuts and Jobs Act

Historic tax reform law will cut taxes for Americans at all income levels, boost economic growth and job creation

WASHINGTON – U.S. Rep. Jackie Walorski (R-Ind.) released the following statement after President Trump signed the Tax Cuts and Jobs Act into law:

“President Trump has signed the Tax Cuts and Jobs Act into law, which means hardworking Hoosiers at all income levels will be getting a tax cut. Middle-income Americans will be able to keep more of the money they earn, and businesses will be able to grow, invest, hire more workers, and raise wages. This law fulfills our promise to deliver a fair and simple tax code that puts working families first and gives them a better shot at the American Dream.”

Background

The House and Senate earlier this week passed the Conference Report to Accompany H.R. 1, the final version of the Tax Cuts and Jobs Act. It passed the House with Walorski’s support by a vote of 227 to 203. Video of Walorski speaking on the House floor in support of this historic tax reform bill is available here.

Bigger Paychecks

American taxpayers send too much of their hard-earned money to Washington, making it harder for middle-income families to thrive. The Tax Cuts and Jobs Act means bigger paychecks for hardworking families, more money in their pockets, and more flexibility in how they use it.

• Lowers income tax rates for Americans at all income levels, with rates of 0, 10, 12, 22, 24, 32, 35, and 37 percent.
• Roughly doubles the amount of income excluded from taxes, with the standard deduction increasing to $24,000 for married couples and $12,000 for individuals.
• Supports families by expanding the Child Tax Credit from $1,000 to $2,000 and preserving the Child and Dependent Care Tax Credit and the Adoption Tax Credit.
• Makes no changes to critical retirement savings options like 401(k)s and Individual Retirement Accounts.
• Maintains important education benefits like student-loan interest deductions and expands 529 accounts so families can save for elementary, secondary, and undergraduate education.

Fairer Taxes

The tax code is overly complicated and full of special interest carve-outs and loopholes. The Tax Cuts and Jobs Act eliminates special interest tax breaks and makes the tax code simpler so people can spend less time filing their taxes.

• Simplifies the tax code so most individuals and families can file their taxes as easily as filling out a postcard.
• Eliminates special-interest loopholes while maintaining important middle-class tax incentives.
• Continues important tax deductions for middle-income Americans, including for charitable contributions, home mortgage interest, medical expenses, and state and local taxes up to $10,000.
• Eliminates Obamacare’s individual mandate penalty so no one is forced to buy a health insurance plan they don’t want.
• Protects family farms and small businesses from the Death Tax by doubling the amount of the current exemption.

More Jobs

Our outdated tax code makes it harder for businesses to create jobs and compete in the 21st century economy. The Tax Cuts and Jobs Act will help businesses grow, invest, and hire more workers, and it will keep America competitive in the global economy.

• Lowers taxes on small businesses by offering a 20 percent deduction on business income earned by S corporations, partnerships, LLCs, and sole proprietorships.
• Ensures tax relief is targeted to Main Street job creators by establishing strong safeguards.
• Helps businesses invest and expand by allowing full and immediate expensing of new equipment and by preserving the ability of small businesses to write off interest on loans.
• Lowers the corporate tax rate from 35 to 21 percent, below the average among industrialized nations.
• Levels the playing field for American workers by ending incentives to send American jobs, manufacturing, and profits overseas.
• Supports “Made in America” innovation by maintaining the Research and Development Tax Credit.

For more information about tax reform, visit walorski.house.gov/taxreform.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee.

Donnelly: Bill hikes taxes on many middle class families, fails to address outsourcing of American jobs

Senator agreed with President’s stated goals, however McConnell's, Ryan’s tax hike does not reflect those priorities

WASHINGTON, D.C. – U.S. Senator Joe Donnelly spoke on the Senate floor expressing his disappointment and explaining why he will oppose the tax hike legislation put forward by Senator Mitch McConnell and Speaker Paul Ryan.

From the beginning, Donnelly has shown his willingness to work with the president on tax reform.  Over the last several months, Donnelly traveled with the President to Indiana on Air Force One, attended Vice President Pence’s speech in Anderson, and participated in multiple meetings with the White House.

Donnelly agreed with the president’s goals of reforming the tax code in a way that overwhelmingly supports the middle class and prevents the outsourcing of American jobs. The McConnell/Ryan bill, however, does not reflect these priorities and instead would result in a tax hike for many Hoosier middle class families and fails to crack down on corporations that outsource jobs to foreign countries.

Donnelly said, in part, in his speech, “The reasons I oppose this bill are plain and simple, clear and commonsense: Instead of providing a tax cut that overwhelmingly benefits the middle class, this bill cuts taxes for the wealthiest Americans while raising taxes on a majority of families making less than $75,000 in the coming years. Instead of closing tax loopholes like the shameful one that allows Wall Street hedge fund managers to pay a lower tax rate than a Hoosier firefighter, than a Hoosier teacher, than a Hoosier policeman, or a Hoosier steelworker…This bill preserves these giveaways…”

“And instead of protecting American jobs by adopting provisions from my End Outsourcing Act, an effort that President Trump has told me on numerous occasions that he is all in on and he supports, instead this tax hike bill does zero to claw back tax breaks and incentives awarded to corporations that later decide to outsource American jobs.”

Young: Historic tax reform bill benefits middle-class Hoosier families and small businesses

WASHINGTON D.C.– U.S. Senator Todd Young (R-Ind.) released a video statement following the Senate’s passage of the Tax Cuts and Jobs Act. 

Here is a transcript of Young's statement:

"Today, I voted for pro-growth tax reform that will provide needed relief to American families.

"This bill is going to create a tax code that is simpler, fairer, and that allows Hoosiers to keep more of their hard-earned money.

"The bill also repeals the harmful Obamacare individual mandate tax, allowing families to choose the healthcare that’s right for them.  In our state of Indiana, nearly 140-thousand Hoosiers of modest means chose to pay that Obamacare individual mandate tax instead of buying insurance they don’t want or they can’t afford. Eighty-one percent of those who paid the tax made less than $50,000 per year, and 40 percent made less than $25,000. By passing this tax reform legislation, and repealing the Obamacare individual mandate tax, we’re getting rid of a major burden on Hoosier families.

"Throughout this process, I listened carefully to feedback from people across the state of Indiana. I’m glad to say that this bill continues and expands support for a number of Hoosier priorities. Including:  

• Deductions for contributions to benefit our charitable organizations.
• Keeping tuition waivers for graduate students untaxed, so that Hoosiers are equipped to thrive in this ever-changing economy.
• Maintaining the Earned Income Tax Credit so that work pays more than joblessness.
• Expanding the Child Tax Credit for families trying to make ends meet.
• And protecting the Adoption Tax Credit so that caring adults can become loving parents.

"When paired with regulatory reform, this tax bill is going to give a major boost to our economy, creating an environment that’s ripe for jobs and small business growth.

"I’m glad we are able to deliver this big win for the American people before the end of the year. And I look forward to continuing advancing Hoosier priorities in 2018."